There are so many data privacy regulations it’s hard to keep track of them all. As a General Counsel (GC), compliance with these laws often falls on your desk.
Back in the day, you would have had to keep track of all of them manually or delegate them to another team (who would - no doubt - strongly dislike you after).
Thankfully, in this age of technology, there are tools that can help you streamline the management of these regulations without a robust staff.
Specifically, a contract lifecycle management (CLM) tool can help you track and manage these regulations and keep you aware of everything you need to do to be in good standing with the powers that be — aka regulators.
Overview of Major Privacy Regulations
In 2018, the EU changed the game by introducing the General Data Privacy Regulation (GDPR). Essentially, it gives data owners (consumers) a say in who uses their data and how.
This landmark regulation inspired several others in other countries and across the United States. Most notably, the California Consumer Protection Act (CCPA) and the Virginia Consumer Data Privacy Law (VCDPA) were enacted to grant similar data privacy protections to consumers based in those states.
While there’s no unified regulation for the US, several other states are enacting their own, which means companies will need to shape up their data collection and usage practices. Companies will often cater to these provisions within their online and paper and pen contracts, but not knowing what’s in your contracts can expose you to even more risk.
Without a tool like a CLM, it can be difficult to track individual requirements and ensure compliance.
3 Ways CLM Can Help You Mitigate Risk
Every company needs a contract lifecycle management (CLM) solution in its legal toolkit. Not only can it help you streamline and manage contracts going in and out of your business, but it can also help you mitigate the risks that come along with these new data privacy regulations. Here are three ways it helps.
1. CLM lets you know what’s in your contracts
Many companies store their contracts in their GDrive or in their emails. As your company scales and starts to do a higher volume of business, these ad hoc storage methods will do more harm than good.
CLM helps you centralize contract storage and track the clauses within each. That way, there’s no more guesswork about performance obligations and requirements, helping prevent a breach of contract as much as possible. So when responding to an incident, you have a ready list of which customers to contact.
2. Know which contracts are more prone to risk
Not all contract risk is created equal. While all contracts signed on your paper may be subject to your company’s forum selection clause, the location of the signer and the data subject is important to track which ones are most at risk.
Being able to track the metadata that tells you where each signer is located (and, therefore, which contracts are most at risk at certain times) is crucial to protecting yourself.
3. Maintain a system of record
After you sign a contract and put it in a filing cabinet, chances are you won’t remember what’s in it, and you won’t be able to uphold them.
CLM helps you maintain excellent records and provide an audit trail. It also allows you to show proof of compliance, which is very important to these regulating bodies when determining whether you are breaking the law or not.
It can be hard to maintain compliance on your own. As a GC, you have lots of other important things you need to do and keep track of. Even with a sizable team, it can be difficult to make sure your company is up on data privacy regulations. But using a CLM can streamline many of the more tedious aspects of contract management and compliance, leaving you free to be a strategic partner and drive business forward.
See how LinkSquares can help you mitigate risk. Request a demo today.
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